Primary home turned rental

[Trace Manning]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $160,000
Cash invested: $15,000
Sale price: $230,000

Primary Home turned rental.
Mortgage and HOA equaled $950
Rented for $1350-$1500 a month for several years.
Sold in '19 and made $100,000+

What made you interested in investing in this type of deal?

Cashflow and tax benefits

How did you find this deal and how did you negotiate it?

Deal was bought new construction and lived in for 6 years. Every year after I was able to rent out.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

New flooring, updated kitchen and bathrooms. Matching hardware and fixtures.

What was the outcome?

I was able to bring in $18k a year, have a tax deduction, pay down my mortgage and make $100k+ after closing and fees to roll into my new home.

Lessons learned? Challenges?

Background check the tenants. Had a heavy drug user cause about $4k in damages.

Make sure you are putting away 10-20% for unexpected events.

You can negotiate everything. From rent to property manager fees. When I started having kids and working full time I hired a property manager who wanted to charge me 16%... I ended up securing them in the end for 8% after putting several of them against one another.